Prices of ferro alloys fell amid mixed sentiments and a general decline in domestic demand. Special steel demand continued to be low, which negatively impacted the market. Ferro alloys demand declined as overseas orders for manganese alloys were low.
However, market players expected ferro chrome prices to rise globally owing to power outages in South Africa.
Limited international inquiries for manganese alloys led to comparatively low ferro alloy demand, according to SteelMint.
Manganese ore
Global manganese ore import prices for higher grades (Mn: 44-46%) were nearly stable w-o-w amid mixed market sentiments. Prices of Mn37% grade were at $4.5/dmtu, while Mn44% stood at $5.33/dmtu, and Mn46% grade was offered at $5.8/dmtu.
IEX power
According to the Indian Energy Exchange (IEX), average spot electricity prices in the day-ahead-market extended its fall this week as it dropped 24% to INR 4.88/unit during 22-28 January, 2023. Weak power demand further brought normalcy in the supply situation as the bids for power sales exceeded that of purchases during the week.
Silico manganese
Prices of silico manganese, exported from Haldia and Vizag ports, dropped by 2% w-o-w. The 60-14 grade went down by 2% w-o-w to $968/t, while the 65-16 was offered at $1,075/t, also down 1% w-o-w. Due to fewer queries last week and limited demand from abroad, prices decreased.
Meanwhile, weekly average prices of silico manganese in the domestic market dropped 2% w-o-w to INR 77,300/t ex-Durgapur, INR 79,330/t ex-Raipur, and INR 77,525/t ex-Vizag. Lack of local demand for silico manganese and liquidity issues drove down prices.
Ferro manganese
In ferro manganese, export prices of HC70% fell marginally by 1% w-o-w to $968/t. Prices of HC75% were at $1,061/t, dipping 1% w-o-w.
However, domestic ferro manganese prices were range-bound w-o-w to INR 78,550/t ex-Durgapur, dropping 1%, while ex-Raipur prices were nearly stable at INR 79,525/t. Due to the restricted demand for special steel and the imbalance between supply and demand, prices of ferro manganese were somewhat range-bound.
Ferro chrome
Indian ferro chrome prices inched up as smelters were anticipating good demand from overseas markets in the near term due to electricity crises in South Africa and Zimbabwe. In addition, domestic buyers remained muted as they were waiting for purchase tender price announcements by major Chinese stainless steel giants. According to SteelMint’s assessment, ferro chrome prices were hovering at around INR 111,100/exw-Jajpur. Furthermore, hike in chrome ore prices due to good demand in Chinese ports also supported ferro chrome prices in India amid high production costs.
Ferro silicon
Most ferro silicon producers offered between INR 122,000-125,000/t exw-Guwahati and Bhutan, according to SteelMint’s assessment on January 27, 2022. Prices were influenced by quantity and selling pressures as Guwahati remained range-bound as market participants awaited release of new offers from Bhutanese plants. In addition, moderate demand also kept prices range- bound with marginal fluctuations.
Trade
SteelMint recorded bulk deals of around 11,500 t of ferro alloys this week. Out of this, manganese deals comprised around 7,700 t, ferro chrome 2,800 t, and ferro silicon around 1,000 t.
Tenders and auctions
- ArcelorMittal Nippon Steel India (AM/NS India) floated a supply tender for 2,000 t of medium-carbon (MC) ferro manganese (Mn: 78%, Size: 10-50mm) from its Gujarat-based plant. The last date for submission of bids was 27 January. The delivery is scheduled for February-March and the payment terms include credit of 30 days.
- AM/NS India floated a purchase tender for 500 t of ferro silicon (Si-70%, size: 10-50 mm) for February-March delivery. The last date for bid submission is 29 January.
- State-owned Steel Authority of India (SAIL) issued a purchase tender for 1,000 t of HC ferro manganese (Mn70%, 25-50 mm) for its Durgapur Steel Plant (DSP). The last date for bid submission is 31 January. A reverse auction will be conducted amongst all the technically-qualified bidders except the highest-quoting bidder.
- State-owned SAIL invited a purchase tender for 2,200 t of high carbon ferro manganese (of grade Mn70%, size 25-50mm) for its IISCO Steel Plant (ISP), Burnpur, West Bengal. The last date for bid submission is 31 January. A reverse auction would be conducted amongst all the technically qualified bidders except the highest quoting bidder.
- AM/NS India floated a purchase tender for 4,200 t of high-carbon (HC) ferro manganese (Mn: 70%, Size: 10-50mm) for its Gujarat-based plant. The last date for submission of bids is 30 January.
- SAIL’s Chandrapur Ferro Alloys Plant (CFP) scheduled an auction for 600 t of silico manganese (Mn 51-56%, 0-3mm, 3-10mm) on 2 February.
- MOIL will conduct an auction for 1,625 t of high-carbon (HC) ferro manganese (1,500 t of 70-72% grade and 125 t of 63-68% grade) and 2,425 t of manganese slag on 3 February from its Bhandara mines and Balaghat plant.
- SAIL floated a purchase tender for 1,600 t of ferro silicon (Si-70%, size: 10-50 mm) for its Salem Steel Plant (SSP), Tamil Nadu. The last date for bid submission is 6 February and the bid offer is valid for 65 days from the date of auction.
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